Coronavirus: DeWine announces $775M reduction in Ohio’s budget

Gov. Mike DeWine announced a $775 million reduction in the state’s budget in the next two months as a result of the coronavirus pandemic

Ohio’s fiscal year to date revenue was $767.9 million below budget at the end of April, DeWine said.

At the end of February, before coronavirus outbreak, it was up $200 million.

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At this point, DeWine is not pulling money from the state’s rainy day fund to cover the deficit, but he expects to dip into it eventually.

Starting in July through the next year, the governor said that state expects to start spreading out money from  the rainy day fund.

The following reductions will be made:

• $210 million in Medicaid

• $300 million in K-12 Foundation Payment

• $110 million in higher education

• $55 million in other education budget line items

• $100 million in other agencies

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If cuts are not made now, more dramatic cuts will be required next year, DeWine said.

State agencies will continue to operate under the travel freeze previously ordered by the governor. Agencies will also immediately freeze any new requests for contract services and suspend purchasing authority for non-essential purchases.

Unlike the federal government, states cannot operate on a deficit, DeWine noted.

More details about the specifics of the reduction will be available tomorrow.

There are a total of 20,969 cases and 1,135 deaths attributed to coronavirus, according to the Ohio Department of Health.

There are 20,072 confirmed cases and 1,038 deaths.

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Hospitalizations are at 3,956, with 1,123 ICU admissions.

More information on restaurants and bars, daycares and hair salons reopening could come Thursday, DeWine said.

The governor also said that there are no plans to have a press conference on the pandemic on Wednesday.

Construction, distribution and manufacturing businesses were able to resume operations starting Monday.

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